Marc and Michelle are married and earned salaries this year of $66,800 and $13,050, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $850 from corporate bonds. Marc contributed $2,850 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,850. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $6,700 of expenditures that qualify as itemized deductions and they had a total of $5,850 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.)

a. What is Marc and Michelles gross income?

Description	Amount
Marc's salary	$66,800
Michelle's salary	13,050
Corporate bond interest	850
Municipal bond interest	350
Gross income	$81,050 (wrong)

b. What is Marc and Michelles adjusted gross income?

c. What is the total amount of Marc and Michelles deductions from AGI?

d. What is Marc and Michelles taxable income?

e. What is Marc and Michelles taxes payable or refund due for the year?